Watching Government:

Patrick Crow
Washington, D.C.
[email protected]

Federal energy policy-or the lack of it-continues to be a subject of debate in the industry, and Energy Sec. Federico Peña plans to put the issue to rest.

Peña has a DOE team working to develop a national energy strategy. "We're beyond policies. We need to develop a strategy and see results," he said.

His last three predecessors also drafted federal energy plans, but Peña a said those fell short in measuring and achieving actual results.

"I am committed to put forth a comprehensive energy strategy that expands beyond traditionally expressed energy polices that have failed to achieve broad and lasting support or success," he told the Senate energy committee last week.

"I know that such a policy will be difficult to develop and even harder to implement. Our nation's energy sector is so diverse that often there appears to be little common ground among its participants."

Market-based plan

Peña said in the next few weeks he will develop a specific set of goals, and then a department team will work to formulate energy policy options to implement them.

"It is my view that implementation actions should be market-based and fiscally responsible and consistent with other goals of national security, economic prosperity, and environmental responsibility."

Peñ told the committee he hopes the fundamental elements of the policy will be finished by September. Frank Murkowski (R-Alas.), committee chairman, noted, "It's too bad you can't re-tailor" the current strategy.

DOE aides say Peña is very committed to the energy strategy project and has a strong interest in oil and gas issues.

Although a major focus of the strategy will be the rising level of oil imports, aides say it will not call for an import fee or limitation.

Peñ observed the U.S. depended on net imports to supply 46% of its oil needs last year, and that total is expected to top 50% in a few years and could reach 60% by 2010.

Aides predict the strategy will attempt to solve the problem of keeping marginal wells in production. Peña said, "I'm very concerned about marginal wells."

Iogcc's policy efforts

Meanwhile, the Interstate Oil and Gas Compact Commission is working to develop a federal energy policy from the producing states' point of view.

A spokeswoman said, "Whatever comes of the DOE effort, hopefully we can make it a more national policy.

"A key goal is to determine the true consequences to the American public of imported oil. There have been many attempts to put a dollar figure on that, and it's very hard to do."

The group has disputed a General Accounting Office study that found U.S. reliance on low-priced foreign oil has not been a bad energy policy (OGJ, Jan. 6, 1997, p. 24).

Iogcc has named leadership teams, headed by producing state governors and congressmen, to address issues such as oil imports, research, production incentive programs, and public education.

Iogcc doesn't plan to issue a policy itself. It will present its findings to the National Governors Association, which it has asked to draft a national energy policy that would address more than oil and gas production.